Indian Rupee plunged to a Record Low of 56.90 Rupees against US Dollar

Indian Rupee plunged to an all time low of 56.90 rupees against the US dollar on 22 June 2012 on global risk aversion and demand for dollar.

India’s slipping domestic growth, declining industrial output figure, RBI’s stringent monetary policy stance, persistent high rate of inflation and credit rating downgrade by international rating agencies like Fitch and Standard and Poor’s have prompted the worsening of Indian rupee against the dollar. Given the current economic and political situation of the country, rupee may fall further at 57-58 levels in June 2012.

Rupee, given its current trading status, is proving to be Asia's worst performing currency. The currency has also been the poorest performer among the all Asian currencies this week, on a 5-day basis. So far the Indian currency had tumbled 6.7 per cent in the year 2012.